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Is EZCORP (EZPW) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is EZCORP (EZPW - Free Report) . EZPW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for EZPW is its P/B ratio of 0.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EZPW's current P/B looks attractive when compared to its industry's average P/B of 0.79. EZPW's P/B has been as high as 0.72 and as low as 0.47, with a median of 0.58, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EZPW has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.09.

These figures are just a handful of the metrics value investors tend to look at, but they help show that EZCORP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EZPW feels like a great value stock at the moment.


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